KPP-Otda demands govt amend Regional Autonomy Law

The Committee for Supervision of the Regional Autonomy Implementation (KPP-Otda) has proposed that the government amend Law No. 22/1999 on regional autonomy, as it still has many weaknesses.

KPP-Otda executive director Hamdan Ainie said on Thursday (July 5) the law would help create gaps among regencies in Indonesia, especially between rich regencies and poor regencies, and this would potentially create conflicts in the future.

Hamdan noted that some rich regencies had planned to scrap education costs for its people, and this would create jealousy to people living in the neighboring regencies.

"This will create a widening social gap," Hamdan said.

In addition, with the autonomy law, regencies tend to create by-laws to demand more taxes from businesses in their areas, and the level of the taxes differ from one regencies and the others.

"This will scare away businessmen from investing in certain areas," he said.

Therefore, he called on the government to create a standardization of by-laws and amend the existing regional autonomy law so that it would not create problems in the future.

He also noted that the distribution of funds from the central government to regional administrations tend to create problems as well.

The central government has allocated Rp 60 trillion of funds to be used by regional administrations. Of the total fund, 10 percent would go to provincial administrations and 90 percent would go to regencies, mayoralties and special district administrations.

Many local administrations have protested the allocations of funds, and they consider the amount as too small, and therefore, the government is encouraged to increase the amount to Rp 75 trillion. (*)

KPP-Otda demands govt amend Regional Autonomy Law

Source: Petromindo.com

The Committee for Supervision of the Regional Autonomy Implementation (KPP-Otda) has proposed that the government amend Law No. 22/1999 on regional autonomy, as it still has many weaknesses.

KPP-Otda executive director Hamdan Ainie said on Thursday (July 5) the law would help create gaps among regencies in Indonesia, especially between rich regencies and poor regencies, and this would potentially create conflicts in the future.

Hamdan noted that some rich regencies had planned to scrap education costs for its people, and this would create jealousy to people living in the neighboring regencies.

"This will create a widening social gap," Hamdan said.

In addition, with the autonomy law, regencies tend to create by-laws to demand more taxes from businesses in their areas, and the level of the taxes differ from one regencies and the others.

"This will scare away businessmen from investing in certain areas," he said.

Therefore, he called on the government to create a standardization of by-laws and amend the existing regional autonomy law so that it would not create problems in the future.

He also noted that the distribution of funds from the central government to regional administrations tend to create problems as well.

The central government has allocated Rp 60 trillion of funds to be used by regional administrations. Of the total fund, 10 percent would go to provincial administrations and 90 percent would go to regencies, mayoralties and special district administrations.

Many local administrations have protested the allocations of funds, and they consider the amount as too small, and therefore, the government is encouraged to increase the amount to Rp 75 trillion. (*)